Release Date: May 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Consolidated revenue increased by 24% in Q4 FY24.
- PBT and PAT increased by 10% and 18%, respectively.
- Company has received new orders for OEM supplies in the export market, expected to boost sales in the coming years.
- Plans to establish warehousing and manufacturing facilities in Mexico to cater to US market demands.
- Initiatives in corporate social responsibility, including education, healthcare, and environmental programs, have been recognized by the state government.
Negative Points
- Footwear industry sales were down due to new BIS regulations and high existing stock levels.
- Margins contracted despite good scale of business and exports, partly due to provisions on materials and employment benefits.
- Challenges in the PU segment due to customs manipulation and high import duties affecting competitiveness.
- Depreciation figures increased year-on-year due to CapEx and additional depreciation on buildings and machinery.
- Uncertainty in achieving projected growth due to potential market fluctuations and external factors.
Q & A Highlights
Highlights of Mayur Uniquoters Ltd (BOM:522249, Financial) Q4 FY24 Earnings Call
Q: Sir, as you mentioned, revenue, EBT, and PAT had an increase. So what would be the qualitative reason for it?
A: The market is improving. We have good sales in the automotive industry, and exports are going very well. That's the main reason. - Suresh Poddar, Chairman and Managing Director
Q: Can you elaborate on where the growth has come from? How has the footwear industry done in this quarter? How has the exports OEM done, auto OEM, domestic as well as the furnishing industry?
A: Every area has done well except for the footwear industry due to a regulation by the Government of India requiring BIS specifications. This has led to a reduction in production to liquidate existing non-BIS stock. - Suresh Poddar, Chairman and Managing Director
Q: What is the outlook for the exports OEM and whether the BMW order has contributed to the growth in Q4?
A: Exports future is very good. OEM export is expected to grow by 20%, and general export by 20-25%. The BMW order has contributed but not significantly yet. - Suresh Poddar, Chairman and Managing Director
Q: Despite good scale of business and exports doing well, why did the margins contract this time?
A: Margins are good this quarter and will improve in coming quarters due to increased exports. This quarter's margin contraction was due to provisions on materials and employment benefits. - Vinod Sharma, CFO
Q: What is the scope for further increase in revenue? What is the spare capacity we have currently?
A: We have around 25% spare capacity. In PU, we are utilizing 70-80%, and in PVC, we have 20-25% spare capacity. - Vinod Sharma, CFO
Q: Can you give us the breakup for export OEM, domestic auto OEM, footwear, and furnishing for this quarter in terms of value?
A: Export volume is INR66.62 crore, domestic INR147.58 crore. In domestic: auto OEM INR52 crore, replacement INR40 crore, footwear INR48 crore, and others INR8 crore. - Vinod Sharma, CFO
Q: What kind of growth can we envisage in export OEM for this coming year?
A: We expect a 20% growth in export OEM and 20-25% in general export. - Vinod Sharma, CFO
Q: What is the outlook for the PU business in FY25?
A: PU will increase but not significantly. We are working with global brands, and it will take time to see a big leap. - Suresh Poddar, Chairman and Managing Director
Q: What kind of outlook do we have for FY25 in terms of top line and bottom line?
A: We are expecting a 20-25% growth in both top line and bottom line. - Vinod Sharma, CFO
Q: What gives us the confidence for these numbers?
A: We have made certain assessments and projections based on our work. However, it is subject to everything going well. - Suresh Poddar, Chairman and Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
